SC orders airlines not to levy transaction fees on tickets
24 Jan 2013 7:25 AM IST
With the Supreme Court directing airlines not to levy transaction charges on air tickets, aviation regulator DGCA is likely to convene a meeting of Indian carriers soon to discuss the issue, official sources said on Wednesday.
Following the apex court ruling, the Directorate General of Civil Aviation (DGCA) is also likely to pro-actively review the airfare bands which determine the air ticket prices depending on when it is bought.
Armed with this ruling, the DGCA would review the fare bands and work out a formula to not only ensure that the passengers get a clear picture of the cost of travel, but the airlines too can undertake viable operations, they said.
Maintaining that the meeting between DGCA and the airlines would be convened ‘very soon’, the sources said all efforts would be made to protect the interests of both passengers and the airlines, most of which are facing a financial crunch.
Quoting a provision of the Aircraft Rules of 1937, DGCA had on 17 Dec ordered that no airline would charge transaction fee and ‘strict action’ would be initiated if they continued to do so.
The directive of the aviation regulator had come after the issue of transaction fee was raised in the Winter Session of Parliament, with members demanding its withdrawal.
The DGCA circular had then said that the provision in the Aircraft Rules ‘does not allow any transaction fee as part of air fare. Therefore if any airline charges transaction fee in violation of rule 135 of the Aircraft Rules, as part of air fare, strict action would be initiated against such airline’.
Transaction fee was introduced by airlines after they adopted a zero commission policy for travel agents. Under the fee, agents charge customers any amount of their choice and there is no uniformity in it.
Following the apex court ruling, the Directorate General of Civil Aviation (DGCA) is also likely to pro-actively review the airfare bands which determine the air ticket prices depending on when it is bought.
Armed with this ruling, the DGCA would review the fare bands and work out a formula to not only ensure that the passengers get a clear picture of the cost of travel, but the airlines too can undertake viable operations, they said.
Maintaining that the meeting between DGCA and the airlines would be convened ‘very soon’, the sources said all efforts would be made to protect the interests of both passengers and the airlines, most of which are facing a financial crunch.
Quoting a provision of the Aircraft Rules of 1937, DGCA had on 17 Dec ordered that no airline would charge transaction fee and ‘strict action’ would be initiated if they continued to do so.
The directive of the aviation regulator had come after the issue of transaction fee was raised in the Winter Session of Parliament, with members demanding its withdrawal.
The DGCA circular had then said that the provision in the Aircraft Rules ‘does not allow any transaction fee as part of air fare. Therefore if any airline charges transaction fee in violation of rule 135 of the Aircraft Rules, as part of air fare, strict action would be initiated against such airline’.
Transaction fee was introduced by airlines after they adopted a zero commission policy for travel agents. Under the fee, agents charge customers any amount of their choice and there is no uniformity in it.
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